welcome to "wall street journal report" i'm maria bartiromo coming to you this week from los angeles. could it just be the beginning? the man who says we might say 17,000 and soon. my conversation with the doctor who says if you are taking multi vitamins you are raising your risk of death. the golden statue translating to good money. the answer may surprise you. "wall street journal report" begins right now. this is america's number one financial news program, "wall

street journal report." now, maria bartiromo. here is a look at what is making news. the markets are watching two key numbers this week, one encouraging and one not so. crude oil thit $108 mark this week mostly on concerns about rising tensions throughout the middle east translating into higher gasoline likely to increase as the summer driving season arrives. the other number to watch, dow $13,000. the dow touched that on tuesday and on friday. though it did close below it this week. existing home sales jumping more than 4% in january, the highest pace in two years. that is well below the 6 million homes that would be sold in a healthy housing market. home depot and hewlett-packard beat expectations.

kraft met estimates while walmart missed. if you have been thinking dow 13,000, stop thinking so small. that's what jeremy siegel says. >> happy to be here. >> we are talking about dow 13,000. you believe the odds are in favor of the dow hitting 15,000 over the next two years and there is a 50/50 chance of 17,000. >> right. 15,000 seems like a dream but truth of the matter is it would only mean another 7.5% this year and 7.5% in 2013 which aren't gigantic gains. so it's certain not out of the question. in fact, i think as you mentioned it is very possible that we are going to get to that 17,000 level by the end of next year. we get a lot of historical

analysis. once you have had a bad five year period like we have had before, the following two years tend to be very, very good with gains that have averaged almost 20% a year. so when we looked at all the different probabilities of what history and there is a lot of history. we are going back 140 years, has told us it seems like i wouldn't call dow 15,000 a slam dunk but 70% of the time we will have reached that and 50% of the time we will have gotten as high as dow 17,000. >> let me ask you about this situation sort of feeding on itself. do you think that 13,000 which we are at, does that bring retail investors back into the market? does this feed on itself? >> a little bit. whenever you cross a thousand there is a little news generated. we have passed 13,000 before.

we have even passed 14,000 actually. in a few points after 13,000 we will be double the low level that we hit in march, 2009. we are going to get the informationitu out to the publi. we have a different market than the lest couple of years. we have had more stability in the market, better dividends in the market. the major reason, maria is that i am bullish is not so much on historical patterns as important as they may be. why i'm bullish is because of the earnings and dividends that american companies are giving to their investors now and in relation to the extraordinary low interest rates which we are all distressed about but it looks like tla in the cards for quite some time to lead for a

very favorable valuation of the stock market. >> you know how people have been feeling. you have been bullish before. the last decade was pretty much a lost one for investors. what went wrong during the last decade? >> no question about it. what went wrong in the last decade, maria, was really very simple. in 2000 the u.s. stock market -- ozround the world, the u.s. stock market was selling at 30 times earnings. that was in the middle of the tech bubble, the enthusiasm. we got to a new millennium. that is much higher than we were in 1929 at the peak of speculation there. in fact, it is the highest we have ever been. you're not going to get good returns from a 30 price earnings ratio market. in fact, when you look back it

it was not surprising we basically got 0 returns over that decade. look at where we are starting now. we are at a 12 or a 13 price earnings ratio. that is below the long run average which is 15 and well below the long run average when you are in a low interest rate environment which is 18 or 19. so the reason why it is going to be different in the next five or ten years is very simple. you are starting out here with stocks at very cheap valuations in 2000, the most expensive valuations. >> that is a great point, jeremy. let me ask you real quick about the news of the week and the president coming out with the tax proposal. you said you are disappointed with president obama's tax policy specifically with dividends and cap talgains. what is the issue? >> obama has always been for

maintaining a break on dividends. when he campaigned in the last presidential election, he didn't want to raise it from 15 to 20% but he never had talked about raising it all the way up to ordinary income tax rates. and the reason is very, very simple is that our system and we have the highest corporate tax rates in the world and within a smidgen. firms are not allowed to subtract dividends. when they pay out dividends they are paying a profit tax and individuals are paying a tax on the earnings. and around the world almost every country gives a break to dividends. and to suddenly take that away in a period where more than ever we investors, those baby boomers that are entering retirement need that dividend income more than ever to finally say, hey,

guys, no more break on dividends. it just came out of the blue. i didn't hear any discussion among democrats about that. i'm very, very disappointed. >> it is always wonderful to have you on the program. thank you so much. >> thank you for having me maria. we appreciate it professor jeremy siegel, a senior investment strategist at wisdom tree of which my husband is ceo. vitamin a a day may not keep the doctor away. the renowned physician whose advice may surprise you. and what it means to hollywood's bottom line. take a look at the stock market for the we we'll be right back. [ male announcer ] the 2012 m-class continually monitors blind spots, scans the road to reveal potential threats, even helps awaken its driver if he begins to doze.

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what if you went for a checkup and your doctor told you everything you knew about health

and science was wrong? that is the description of my next guest, dr. david agus, the author of "the end of illness". you spent your career as an oncology. you worked with steve jobs and senator kennedy. what has your experience about weather the disease of cancer told you about health? >> i have seen patients and have to say drugs aren't going to work. it has pushed me to prevention. one of the big aspects of the book is how to prevent the disease. >> tell me about that. what is the most important thing that we need to know in terms of prevention? diet and exercise i want to say. >> you want to know yourself. one of the key things of the book is know your own metrics, get your own lab. go into your doctor with all your information. when you go to your doctor he or

she will check your blood pressure when you are there. what about at night when you go to bed? i want all of your data. and then there are things like stattens. it is important. if you have a normal cholesterol and you go in on a statten you reduce the incidents of cancer by 30 or 40%. i want people to focus on things people can prevent. >> we talked about taking aspirin every day. why? because it thins your blood? it things your blood and blocks inflammation. one aspirin a day will reduce colon cancer by double digit percentages. you can get a statten at walmart for $10 for a 90 day supply. aspirin for a year is 3 # or $4. these are not expensive prescriptions. >> this is unbelievable.

why isn't this more wide spread? >> i don't get it. health care and food are 31% of gdp in this country yet no candidate is talking about it. a third of our economy and i don't hear it talk about. i hear health care finance talked about but not health care. >> let me ask you about vitam s vitamins. you say 90% of things is not beneficial like taking vitamins and working out in the morning. you asked who takes vitamins in the room and i raised my hand. you said i was raisic my risk of? >> you are raising your risk of disease. none of them had a benefit. many of the studies actually have a decrement. if a man takes vitamin e a day for three years his risk of prostate cancer, the most common nonskin cancer is up 17%.

there was a beautiful study published this year that if women take vitamins or iron their risk of death is slightly higher. i look at these and say no benefit at all. clearly positive major negative here. why are people doing it? >> i don't understand why. first of all it scares me that vitamins are not regulated by the fda. why is it that if i'm taking a multi vitamin why am i hurting myself? >> you are a complex system. if you take one thing into you it changes the rest of you. it changes you in a direction either for health or against health. in this case we did ten year studies with tens of thousands of people showing no benefit. >> what is the most important thing we can do today to improve our sustainable health that doesn't cost much? >> the simple thing

regularity and schedule. if you have lunch at noon and tomorrow 2:00. when that happens the body conserves energy. that data is profound. when you get up and go to bed and eat make it regular. it is the regularity part. the person who randomly grabs an apple hurts themselves. >> i'm still blown away by the vitamin thing. your ideas have raised some controversy saying otherwise healthy people may take your advice too far and demand testing. how do you defend that? what do you say in terms of cost and care? >> i don't tell anybody to do anything. i say have the conversations with your doctor. i want to prevent disease. we know if smokers get body cts and you find cancer early you save lives.

i want if the technology is not good let's develop better technology. i want the emphasis on a problem and solution skpb not putting it under the covers. i want to move forward. >> thank you so much. up next on "wall street journal report," is all that glitters gold when it comes to the oscars. we'll find

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part of my recent conversation on this program on the oscar nominated film, the artist. what kind of impact can an oscar have on the bottom line. joining us is paul dergrabedian. thanks for joining us. >> great being here. >> you have interesting statistics on how much an oscar nomination is worth to a film. how about an actual victory? how much can it help the bottom line? >> it definitely can help. we talked about the oscar boost. it is more of an oscar nomination boost because during the time of the nominations and telecast the studio kz make hey out of the fact that the movie has been nominated.

once the movie wins by that time the movies have been in the market place three months or more and are pretty much played out. i think where the oscar win helps is down the line, television sales, vod rights. when your film is an oscar winner for best picture it adds to the value of that product. >> after an oscar win you are getting more business and the numbers add up. how about the individual actors? are most nominees in the earning stratosphere already? >> it can definitely help an actor, no question. if he were to win that definitely would raise his price quote because now he would be an oscar winner. you will notice, too, in a lot of marketing for films it would

say academy award winning actor so and so or academy award nominee raises the profile. however, we have heard oftentimes about the oscar curse. some actors after they win the oscar their career doesn't go anywhere. i don't want to see that happen to anyone in the future. it is definitely never a bad thing, i think, to win an oscar. >> sure. what are the trends this year? what are you expecting? >> i'm looking at "the artist" as a film that can do quite well at the oscars. of course, "the help" and "the descendants", these films are not doing that well at the box office. they are not getting that huge oscar bump that we normally see. in fact, if you add up the total

at this point of the nine best picture nominees it is about $595 million. if you take last year's best picture nominees, there were ten of them last year to be fair, they add up to $1.3 billion at this point so more than double the box office for the crop of best picture last year than this year simply because there is not a big giant "avatar" hit or with "king speech" winning had "toy story 3" and "inception" with 293. this year we just don't have that. >> what kind of politics goines into all of this? are there politics? the studios trying to influence the nominations and voting? >> they put adds in trade papers

online to really not only boost their movie but also in the actors. they will really highlight the fact that let's say meryl streep is nominated for "iron lady" they spend millions of dollars trying to beef up the oscars. >> who do you think wins? >> i got to say i think for picture i'm going to go with "the artist." for actor it is close for george clooney. meryl streep, she has won so many academy awards but viola davis i think can win that one. >> she was terrific. >> "the help" the highest grossing with about $170 million

domestically. there is great acting in that movie. the bottom line is for hollywood it is never a bad thing to get an oscar nomination. >> great to have you on the program. thank you so much. >> thank you. >> enjoy the show. we'll see you soon. paul dergrabedian joining us. we'll see what coming up that will have an impact on your money. if diamonds are a girl's best friend this could have a lot of acquaintances. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case,

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check out the website wsjr.cnbc.com. a look at the stories coming up in the week ahead that may impact your money. we have two important indicators of whether the housing market is recovering this week. on monday we get data on pending home sales. and on tuesday the home price index will be out. on wednesday the reading of the gross domestic product comes out. also on wednesday federal reserve chair man ben bernanke will deliver the report. on thursday auto sales for the month of february and that could be impactful for the auto stock. it may be too big to wear on your finger but it is an amazing sight. an australian pink diamond measuring in at 12.6 karats was

found in mining giant argyle mine. pink diamonds are one of the most valuable jewels in the world. this one is worth around $12 million. pretty gorgeous there. that will do it for us. thank you so much for joining me. next week my guest speaks about simmering tension in the middle east. have a great week everybody. i'll see you again next weekend. [ crickets chirping ]

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